An HDB bridging mortgage is a short-phrase financing selection built to assistance homeowners in Singapore manage the financial gap between promoting their existing HDB flat and buying a fresh house. This bank loan supplies short term cash, generally for the period of around six months, to go over the downpayment together with other Preliminary fees of the new home before the sale proceeds from the old flat are been given. Bridging financial loans are commonly supplied by financial institutions and therefore are secured towards the existing property. They ordinarily have better fascination charges than normal house loans, normally starting from 3% to 5% for every annum or simply a amount pegged to SORA. The appliance method demands evidence of sale for The existing house, including an Option to invest in, and documentation for The brand new home. Repayment from the personal loan is anticipated after the sale of the existing flat is done plus the proceeds are acquired. Some banking institutions, like UOB and Standard Chartered, present bridging bank loan choices, sometimes with preferential premiums for purchasers also taking a different property here mortgage with them. It is vital to note that a bridging loan differs from your HDB's Increased Contra Facility, that's a scheme especially for Individuals buying and providing HDB flats concurrently.